Given the production function y= f(x1,x2)=x11/3x21/3. The amount of x2 is equal to 216 in the short run. Calculate the factor demand functionGiven the product price (P) is 6 and the price of factor 1 (w1) is 12, calculate the optimum amount of factor 1. Show your results on a graph.What will happen to the optimum level of factor 1 when both the price of the good and the price of factor 1 increase simultaneously?

In economics, a production function is a means of examining the relationship between input and…

Answered: Given the production function y=…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Given the production function y= f(x₁,x₂)=x₁^1/3x₂^1/3. The amount of x₂ is equal to 216 in the short run.

Calculate the factor demand function
Given the product price (P) is 6 and the price of factor 1 (w₁) is 12, calculate the optimum amount of factor 1. Show your results on a graph.
What will happen to the optimum level of factor 1 when both the price of the good and the price of factor 1 increase simultaneously?

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